Photo: Rivian
Despite a difficult year, Rivian almost managed to hit the self-imposed 25,000-unit production target for 2022. Officially, Rivian delivered 24,337 units, with additional 714 vehicles off the production line but not yet ready for deliveries at the end of the year.
Rivian is in the pole position to follow Tesla’s success story thanks to its strong execution and perspectives. The maker of the market’s most acclaimed electric pickup truck has impressed many people with its R1 line of adventure vehicles. It has also managed to weather the rough seas of 2022 despite facing production issues and a difficult endeavor to build a second factory in Georgia.
That’s why we’re not surprised to learn that Rivian reported 24,337 units produced in 2023, with other 714 vehicles off the production line but not yet complete. The EV startup thus narrowly missed the 25,000-unit production target when considering official data. However, it delivered on its promises when accounting for all the vehicles off the production line but not yet factory-gated. Those 714 units were awaiting parts, software validation, wheel alignment, and other finishing touches, thus not counting toward the official figure because they were not 100% completed.
Supply chain issues and slow production ramp-up forced Rivian to re-assess its production targets in mid-2022. Rivian initially predicted it would produce 50,000 vehicles in 2022 but had to reduce the output guidance to 25,000 units following setbacks.
“There were many headwinds in 2022,” Scaringe admitted in a letter to employees. “Considering the supply chain issues that caused the plant to close for 20 days and shut down early on 50 days in the last 12 months — and the inclement weather that forced us to close for an additional 5 days — our team stayed focused and worked through the challenges together.”
Rivian produced 10,020 vehicles in the fourth quarter after adding a second shift at its factory in Illinois and improving the parts supply. This makes us confident that the EV startup could blow past the 50,000 mark in 2023. Rivian has a backlog of more than 100,000 preorders for the R1T and R1S, in addition to a multi-year Amazon order for 100,000 electric delivery vans.
One thing that doesn’t look that good for Rivian is delivery numbers. The company delivered 8,054 vehicles in the fourth quarter, almost 2,000 less than it produced. For 2022, Rivian has delivered 20,332 units, leaving about 4,000 units in inventory. We’ve also seen this trend at Tesla, which is apparently struggling to find buyers for its vehicles. Hopefully, with the Inflation Reduction Act entering into effect this year, the market conditions will improve, and people will start again buying electric cars.
Rivian had to make difficult decisions in the face of supply-chain disruptions in 2022. The company announced shelving plans to build delivery vans in Europe with Mercedes-Benz. Production of the second vehicle line, the smaller R2 platform, was also pushed back to 2026. Georgia’s planned $5 billion factory will also take more time to complete.
Rivian is unusual in building a second factory while still struggling to ramp up production at its main production facility. This has made Elon Musk warn Rivian about the dangers posed by this approach.
That’s why we’re not surprised to learn that Rivian reported 24,337 units produced in 2023, with other 714 vehicles off the production line but not yet complete. The EV startup thus narrowly missed the 25,000-unit production target when considering official data. However, it delivered on its promises when accounting for all the vehicles off the production line but not yet factory-gated. Those 714 units were awaiting parts, software validation, wheel alignment, and other finishing touches, thus not counting toward the official figure because they were not 100% completed.
Supply chain issues and slow production ramp-up forced Rivian to re-assess its production targets in mid-2022. Rivian initially predicted it would produce 50,000 vehicles in 2022 but had to reduce the output guidance to 25,000 units following setbacks.
“There were many headwinds in 2022,” Scaringe admitted in a letter to employees. “Considering the supply chain issues that caused the plant to close for 20 days and shut down early on 50 days in the last 12 months — and the inclement weather that forced us to close for an additional 5 days — our team stayed focused and worked through the challenges together.”
Rivian produced 10,020 vehicles in the fourth quarter after adding a second shift at its factory in Illinois and improving the parts supply. This makes us confident that the EV startup could blow past the 50,000 mark in 2023. Rivian has a backlog of more than 100,000 preorders for the R1T and R1S, in addition to a multi-year Amazon order for 100,000 electric delivery vans.
One thing that doesn’t look that good for Rivian is delivery numbers. The company delivered 8,054 vehicles in the fourth quarter, almost 2,000 less than it produced. For 2022, Rivian has delivered 20,332 units, leaving about 4,000 units in inventory. We’ve also seen this trend at Tesla, which is apparently struggling to find buyers for its vehicles. Hopefully, with the Inflation Reduction Act entering into effect this year, the market conditions will improve, and people will start again buying electric cars.
Rivian had to make difficult decisions in the face of supply-chain disruptions in 2022. The company announced shelving plans to build delivery vans in Europe with Mercedes-Benz. Production of the second vehicle line, the smaller R2 platform, was also pushed back to 2026. Georgia’s planned $5 billion factory will also take more time to complete.
Rivian is unusual in building a second factory while still struggling to ramp up production at its main production facility. This has made Elon Musk warn Rivian about the dangers posed by this approach.
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